Thank you all, driving better, we did not have water in the cockpit at all. Only while beached bow in did the bilge come on. It never came on under driving conditions. While beached the bilge came on for 30-50 seconds every 10-15 minutes. When I opened the hatch and inspected it looked like water was dripping under the pressure and waves right around/above the steering arm/drive shaft.
Yep, that sounds like the transom assembly is leaking. It will only get worse in time and corrode more things as well. Definitely something you will want to get checked out and fixed.
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Dream 'Inn III -- 2008 400 Express